A different way of planning with families

The ultimate objective of most financial and estate planning is to provide security and stability for the family now, and for the next generations. Planning professionals use many tools and strategies to address those objectives. Even so, multiple studies confirm that 9 out of 10 families will lose their assets–and often their family unity as well–within 3 generations. So, for example, where Generation 1 achieves financial success, 70% of the time the money is gone by the end of Generation 2, and 90% of the time it is completely gone by the end of Generation 3.

The truth is that the causes and cures for this historical 3 generation disaster have not been adequately addressed by planning professionals. At Todd Rhine, we work with our clients and their families (and often with their other advisors) to tackle this reality head-on. Our approach includes dealing with a critical question:

If 90% of families fail,

what do the successful 10% do differently?

In fact, we do know what habits, characteristics and activities the successful 10% have shared in common for centuries. We know how they identify the outcomes that matter most to them, and how they come together in common purpose to achieve those outcomes. We work directly with families, and / or in collaboration with their existing advisors, to design plans that can help families to get stronger and more united today, and then to stay that way for generations.

the 'Same-Old-Same-Old' doesn't work

Saying that we work 'differently' with client families is not a marketing slogan. When a client tells us that strengthening his or her family on a multi-generational basis is important to them we initiate a series of activities with them (sometimes in collaboration with their other advisors) designed to help them to identity and achieve their desired multi-generational outcomes.

Here are just a few of the questions that we work through along with our clients and their families in this process:

1. Identify the purposes of your family and the value of keeping it together;2. Learn a comprehensive and balanced view of wealth (which is not just limited to money), and identify the value of being prepared to receive the financial wealth;3. Understand why a vast majority of families fail to keep their family and wealth together for multiple generations (the “90% rule”), and the cure for that failure;4. Identify the leadership and communication styles of each member of the family, and learn how to enhance communication within your family;5. Identify 3-5 common values upon which you ALL agree – even if you did not think you had any common vision/values; and6. Identify the purpose of your family’s financial wealth, and the value and benefits of keeping it within your family.

The answers to these questions help clients to achieve a clear vision for what is possible, an understanding of the communication and leadership styles and issues within their family (and how to improve both!), a list of common vision and values, and the next steps the family may want to take to achieve those things.

Learn more about how Todd Rhine can help you and your family achieve the multi-generational outcomes that matter most.